Divorce involves more than dividing assets, it also requires addressing Marital debts when necessary. A common concern Spouses face is determining who will be responsible for credit card debt after a Divorce. Understanding how Florida Law handles debt division can help protect your financial future and prevent unexpected liabilities.
How is credit card debt divided in a Florida Divorce? Florida is an Equitable Distribution state, meaning Marital assets and debts are divided fairly, rather than equally. During a Florida Divorce, the Court examines when the debt was incurred, who benefited from the charges, and whether the debt is considered Marital or Non-Marital.
Generally speaking, credit card debt accumulated during the Marriage for household expenses, family purchases, vacations, or other nuptial related purposes is considered Marital debt. This means both Spouses may share responsibility for repayment, regardless of whose name appears on the account.
As mentioned above, an important factor to consider in debt division is whether the credit card debt is classified as Marital or Mon-marital.
Examples of Marital debt include:
- Joint credit card accounts opened during the marriage
- Charges incurred during the Marriage that were beneficial to the family
- Debt used to maintain the Marital household
While Non-Marital debt may refer to the following:
- Credit card balances acquired before the Marriage
- Personal spending unrelated to the Marriage, which might constitute marital waste
- Debt incurred after the Date of Filing for Dissolution of Marriage for individual purposes
The Court carefully reviews financial records to determine how each debt should be categorized.
What happens to joint credit card accounts? Joint credit card accounts may create ongoing financial risks after Divorce. Even if a Final Judgment in the case assigns responsibility for a joint account to one Spouse, creditors are not bound by the Court order. If the responsible Spouse fails to make payments, the creditor may still pursue both account holders for the balance. Many Family Law Attorneys recommend that their Clients close joint accounts and pay off or refinance balances whenever possible before a Divorce is finalized.
Are there situations where one Spouse is liable for more debt than the other? Yes, Florida Courts consider several factors when dividing debt, including each Spouse’s financial circumstances, earning capacity, and contributions to the Marriage. If one Spouse accumulated excessive debt through reckless spending, waste of marital assets, or other Non-Marital activities, the Court may assign a larger portion of that debt to that Spouse. Also, if a Spouse intentionally incurred debt during the Divorce process to reduce Marital assets, the Court may take that conduct into account when distributing financial obligations.
Credit card debt can significantly impact your finances even after a Divorce is finalized. We encourage our Family Law Clients to be intentional about reviewing account statements and monitoring credit reports.
Every Family Law matter presents unique financial circumstances. No two cases are the same. Hiring an experienced Family Law Attorney makes a difference. He or she can evaluate your situation, negotiate debt division, and serve as your guide throughout the process.
Are you interested in learning more about credit card debt, Equitable Distribution, or other aspects of a Florida Divorce? If your answer is “Yes,” The Marks Law Firm, P.A. is available for support. Our Legal Team is committed to going the extra mile for our Family Law Clients. Contact us today to schedule a consultation and discuss your Divorce case with a Central Florida Family Law Attorney.